Arizona Public Service, the largest electric utility in the state is seeking what it claims will be an average 13.6% rate increase for residential customers, which would increase the annual household electric bill in its service area by $232, based on figures from findenergy.com.
The new rates would affect over 1.3 million households and organizations that rely on APS for their electrical needs in Arizona.
“The outlook for the ratepayer is bleak,” the Residential Utility Consumer Office wrote in a February legal filing with the Arizona Corporation Commission that estimated the actual rate increase would come to 26.3%, or an additional $895 million paid by customers.
If the rate application that APS filed with the ACC in October is approved, the new rates would take effect on Friday, Dec. 1.
Verde Valley residents can voice their concerns about the proposed rates by telephone at three upcoming public comment meetings or in person at the Arizona Corporation Commission’s offices at 1200 W. Washington St. in Phoenix. Callers will have a three-minute time limit at the meeting. To provide public comment by telephone, call (877) 309-3457 and use passcode 801972877##. The meetings will continue until their scheduled end time or until the last caller is finished speaking, whichever comes first.
The meeting dates and times are:
- Monday, July, 31, 10 a.m. to 1 p.m.
- Wednesday, Aug. 2, 10 a.m. to 1 p.m.
- Thursday, Aug. 10, 10 a.m. to noon
Public comments can also be submitted as written statements by mail to the Arizona Corporation Commission, Consumer Services Section, 1200 West Washington, Phoenix, AZ 85007 by referencing Docket No. E-01345A-22-0144. Finally, comments can also be submitted through the commission’s website at azcc.gov by clicking on “Cases and Open Meetings” and then clicking on “Make a Public Comment in a Docket.”
Residents who require assistance with making a public comment should direct questions to the ACC Consumer Services Section at (602) 542-4251 or (800) 222-7000.
Submitted comments from users so far have been uniformly against the proposed rates.
“Once again, APS is attempting to make their ratepayers cover the costs for their poorly managed public utility,” Sedona resident John Neville wrote to the commission. “Nowhere in their request for rate increases [do] they begin to adequately cover their need to shut down the fossil fuel plants and actively support residential, business and community-distributed energy generation. Nowhere do they discuss how they are going to reduce the excessive compensation for their executives.”
The Sierra Club of Arizona wrote, “APS should retire the Four Corners Power Plant prior to 2031 and replace it with lower-cost renewable energy … APS should switch Four Corners to seasonal operations in 2023 as originally planned … The ACC should approve funding for coal community transition for communities impacted by coal plant retirements.”
“APS’s proposed funding of $106.5 million CCT funding proposal is an important first step and should be approved by the Commission,” Sierra Club Grand Canyon Chapter Director Sandy Bahr said.
“The application proposes its allowable return on equity be increased from 8.7% to 10.25%. Over the last three years, APS’ annual profits have ranged from $542 million to $649 million.
“That’s great for them, but where does that leave the average Arizona person who is having a hard enough time [dealing] with the inflation that has been put on us these last few years?” Cornville resident Joyce Riebli wrote. “I am on a fixed income and no longer work. I don’t have a way to increase my income. This rate increase will hurt me and the majority of the residents of Arizona.”
